Fitch to rate Western Union notes A-

Fitch Ratings said it expects to rate Western Union Co.'s proposed issuance of two-year senior floating-rate notes A-.

Proceeds from the offering are for general corporate purposes.

Fitch currently rates Western Union's issuer default rating, senior debt and senior credit facility at A- and short-term issuer default rating and commercial paper at F2.

The outlook is stable.

The ratings are supported by the extensive domestic and growing international agent network with a strong worldwide brand, revenue stability from strong global diversification and consumer exposure and an asset-light business model with a largely variable cost structure due to the company's network of agents, which generally own and operate the retail locations, the agency said.

The ratings are constrained by event risk dominated by shareholder friendly actions, significant foreign-currency exposure given broad international diversification, the likelihood that Western Union will face increased competition from regional and multi-national banks entering the remittance market, the compliance risks associated with regulations governing Western Union's business in numerous jurisdictions worldwide and the risk of adverse political environments or legislation impacting migration flows, the agency said.

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